Baker Tilly presents TIF annual report; commission defers 2026 spending plan
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Summary
Baker Tilly presented an annual TIF report showing healthy near-term TIF revenues but expected expirations beginning in 2029; the commission accepted the presentation and deferred adoption of the 2026 TIF spending plan to allow members to review full documents before a Dec. 1 gateway upload.
Michigan City — Baker Tilly Municipal Advisors presented the Michigan City Redevelopment Commission’s annual Tax Increment Financing (TIF) report on Oct. 16, showing multi‑year TIF growth followed by scheduled expirations and projecting both opportunities and near‑term reductions tied to statutory changes.
Why it mattered: The report is the commission’s required annual review of TIF allocation areas, outstanding debt, and projected revenues. Baker Tilly’s presentation outlined multiple TIF components — consolidated North and South TIF areas, the station block/mixed‑use allocation, East Michigan Boulevard expansions, and several newly created allocation areas including Sola and Trion Meadow. Those areas collectively generated about $7.7 million in TIF revenue in 2025 and were projected to peak near $8.6 million in 2028 before scheduled expirations in 2029 reduce collections.
What the advisor said: “This presentation is an annual requirement that all redevelopment commissions have to go through,” said Andy Mauser of Baker Tilly Municipal Advisors. Mauser explained the report models the effects of recent state changes in property taxation (Senate Bill 1) for 2026 and highlighted that as parts of consolidated TIF areas expire, assessed value will be returned to the general tax base — a shift that could reduce TIF collections but increase taxable value for overlapping units such as schools and the municipal general fund.
Key numbers and timing: The presentation showed North Side TIF collections near $4.4 million and South Side collections near $3.2 million in 2025, with consolidated collections of roughly $7.7 million. Baker Tilly projected growth through 2028 followed by a notable drop beginning in 2029, when about $177 million of assessed value (the sum of certain TIF components) would be returned to the regular tax base, a one‑year boost to overlapping taxing units.
Commission decision: The commission voted to accept Baker Tilly’s annual TIF presentation but deferred formal adoption of the 2026 TIF spending plan so full copies could be distributed and members could review the spending plan prior to a required Dec. 1 upload to the state gateway. Staff said the controller and Baker Tilly will provide copies for the commission and coordinate the adoption timeline.
Context and next steps: Mauser told the commission the report incorporates known project activity (including station block payments tied to Flaherty & Collins) and the RIF‑funded sewer obligation. He also said Senate Bill 1 modeling is evolving and the commission should expect subsequent updates as state deductions and exemptions are phased in. The commission asked staff to distribute the spending plan and return with the item for a vote at the next meeting so the plan can be uploaded by the Dec. 1 deadline.
